Property market in Spain: Where buyers can still find homes under €600/m²

While Málaga province is often associated with high property prices along the Costa del Sol, recent data shows that homes can still be purchased for under €600 per square metre in certain inland areas. The municipality of Villanueva de Algaidas is among the most affordable, with average prices of around €594/m² as of early 2026.

Situated in the north-eastern part of the province, near Antequera, Villanueva de Algaidas presents a clear contrast to coastal markets. Seaside locations continue to attract international buyers and second-home owners, contributing to average prices that frequently exceed €2,000–€3,000/m². Inland areas, by comparison, tend to have lower demand and less tourism-related investment, which is reflected in more moderate pricing.

Reasons for lower prices away from the coast

The difference in property values is largely explained by economic activity and population patterns. Coastal areas benefit from a strong tourism sector, established expatriate communities, and demand for short-term rentals. Inland municipalities such as Villanueva de Algaidas rely more on local industries, including agriculture, and have smaller, more stable populations.

For buyers, this often means access to larger properties at a lower cost per square metre. Many homes are traditional village houses, sometimes including outdoor space such as patios or small gardens. However, lower prices can also reflect practical limitations, including fewer local employment opportunities, less developed infrastructure, and reduced access to services such as international schools or specialised healthcare facilities.

In recent years, interest in inland areas has increased. Improved road connections and the continued growth of remote working have made it more feasible for some buyers to live outside major urban or coastal centres while maintaining employment elsewhere.

Considerations for expats and prospective buyers

For expats, residents, and those considering relocation to Spain, affordability is only one factor. Inland areas generally offer a slower pace of life and lower overall living costs, but practical considerations should be assessed carefully before purchasing property.

• Transport: Access to a private vehicle is usually necessary, as public transport services can be infrequent or limited in rural areas. 
• Services: Key services, including hospitals, administrative offices, and international schools, are often located in larger towns or cities, meaning regular travel may be required. 
• Property condition: Some lower-priced properties, particularly older village houses, may require renovation or modernisation, which can add to the overall cost. 
• Connectivity: Internet infrastructure has improved in many inland areas, but quality and speed can still vary depending on the exact location. 

Lower purchase prices can reduce the financial barrier to entering the property market, which may appeal to first-time buyers or those relocating from countries with higher housing costs.

Changes within the property market

The availability of housing below €600/m² in municipalities such as Villanueva de Algaidas reflects broader variations within Málaga’s property market. Coastal areas continue to experience consistent demand, driven by both domestic and international buyers, while inland regions remain comparatively less expensive.

This distinction has become more relevant as buyer priorities evolve. Some purchasers are placing greater emphasis on space, cost, and long-term affordability rather than proximity to coastal amenities. As a result, inland towns are receiving increased attention, although demand remains lower than in coastal zones.

Estate agents report that interest from foreign buyers in inland Málaga has grown gradually, particularly among those seeking permanent relocation rather than holiday homes. However, the market remains relatively stable, without the rapid price increases seen in coastal areas.

Balancing cost with practical needs

Purchasing property in Málaga province for under €600/m² remains possible, but typically requires selecting locations away from the coast. Inland municipalities provide lower prices, but with different living conditions compared to coastal towns.

For expats and prospective residents, decisions should take into account both financial considerations and day-to-day requirements, including access to work, services, and transport. While coastal areas continue to attract the highest levels of demand, inland towns such as Villanueva de Algaidas offer a lower-cost option for those prepared to adapt to a more rural environment.

Overall, the data indicates that affordable property in Málaga province has not disappeared, but is concentrated in specific inland locations where demand, infrastructure, and economic activity differ from the coastal market.